Exclusive: High Desert Power Project For Sale

(Victorville)-The High Desert Power Project, the power plant that has provided the City of Victorville and other local organizations with millions in tax increment payments, is for sale, High Desert Daily has learned.

The 830 megawatt plant, which began operations in 2003, has been put on the market by parent company Tenaska and it is also being packaged with a plant in Texas in an effort to raise funds, according to Power Finance & Risk, a trade publication.

Although no initial sum was available, Power Finance & Risk said in a newsletter that the plant should attract a large circle of prospective buyers.

Industry experts see the High Desert Power Project as an efficient plant located in a friendly city, which is a very attractive package for energy companies.

Tenaska spokeswoman Jana Martin did not deny the sale of the High Desert Power Project. “The ownership of the High Desert Power Project regularly monitors market conditions to develop the best business plans for this power generating asset. As manager of the private equity fund that owns the plant, we do not discuss our long-range plans for any power generating asset publicly, as that information is proprietary.” “No announcements have been made regarding future business plans for the High Desert plant,” said Holley (Hatt) Salmi, Manager, Communications for Tenaska.

Tenaska orginially bought the Victorville and Texas plants from Constellation Energy for $1.64 Billion in 2006.

Tenaska has worked in the past with Barclays Capital, Citigroup and Morgan Stanley to sell/auction power plants. We are a private company and we do not provide comments on items like this.

Victorville Mayor Ryan McEachron said he was amazed to hear of the sale.

“It’s a surprise to hear the news in light of the fact that Tenaska showed interest in the Victorville 2 plant.” McEachron said. “For us keeping the jobs that this plant generated creates a priority. We wish Tenaska nothing but the best of luck and we see this as nothing but a business transaction.”